Approaching the peak of a triangle formation

US dollar rebound from two-week lows at 0.9640 has been capped at 0.9735 where the pair has found resistance at the upper limit of the last two months’ triangle formation.

The daily chart shows the pair printing lower highs and higher lows, squeezed within ever-narrowing limits approaching the peak of a triangle shape. With the pair supported so far above the 50-day SMA, a daily close above trendline resistance, right now around 0.9730 would set the dollar aiming towards the 200-day SMA at 0.9785 on its way to March 23 highs at 0.9900.

On the downside, the 50 and 100-day SMA, at 0.9685/0.9700 are closing the path towards trendline support at 0.9650 and May 1 low at 0.9590.

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